AI/ML: Breaking through the hype to deliver strong business outcomes_AWS_Peak_Footasylum
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The document discusses how AI/ML can help deliver business outcomes by moving past hype. It provides examples of how Footasylum used AI to increase digital revenues by 28% and return on ad spend by 10x through personalized marketing, recommendations, and social media targeting. The document also outlines Peak's full-stack AI system and how it supports connected retail through optimizing demand planning, inventory, logistics and more to improve profitability and efficiency. Real customer stories demonstrate how AI can be applied across marketing, supply chain, and operations.
AI/ML: Breaking through the hype to deliver strong business outcomes_AWS_Peak_Footasylum
- 1. AI/ML: Breaking through the hype to deliver strong business outcomes Tom Litchford, WW Retail Leader, AWS Richard Potter, CEO, Peak Tom Summerfield, Head of Commerce, Footasylum
- 2. © 2020 Amazon Web Services, Inc. or its affiliates. All rights reserved 40% of digital transformation initiatives supported by AI in 2019 —IDC 2018 InnovationDecision making Customer experience C E N T E R P I E C E F O R D I G I TA L T R A N S F O R M AT I O N Business operations Competitive advantage
- 3. © 2020 Amazon Web Services, Inc. or its affiliates. All rights reserved The AWS ML Stack Broadest and most complete set of Machine Learning capabilities VISION SPEECH TEXT SEARCH CHATBOTS PERSONALIZATION FORECASTING FRAUD DEVELOPMENT CONTACT CENTERS Ground Truth Augmented AI ML Marketplace Neo Built-in algorithms Notebooks Experiments Model training & tuning Debugger Autopilot Model hosting Model Monitor Deep Learning AMIs & Containers GPUs & CPUs Elastic Inference Inferentia FPGA Amazon Rekognition Amazon Polly Amazon Transcribe +Medical Amazon Comprehend +Medical Amazon Translate Amazon Lex Amazon Personalize Amazon Forecast Amazon Fraud Detector Amazon CodeGuru AI SERVICES ML SERVICES ML FRAMEWORKS & INFRASTRUCTURE Amazon Textract Amazon Kendra Contact Lens For Amazon Connect SageMaker Studio IDE NEW NEW! NEW! NEW! NEW! NEW! NEW! NEW! NEW! NEW! NEW! Amazon SageMaker
- 4. © 2020 Amazon Web Services, Inc. or its affiliates. All rights reserved M A C H I N E L E A R N I N G I S H A P P E N I N G I N C O M PA N I E S O F E V E R Y S I Z E A N D I N D U S T R Y Tens of thousands customers have chosen AWS for their ML workloads | More than twice as many customers using ML than any other cloud provider
- 6. +4% YoY growth +3% YoY growth US retail sales UK retail sales *Source:Securities and Exchange Commission (SEC)*Source:ON S It’s not all doom and gloom
- 9. We are Footasylum Creativity connects our bricks, clicks and kicks. • Founded in 2005, now at 70+ stores with 35%+ digital sales • We are part of our consumers’ community: urban style leaders who drive trends and do things our own way. • Endorsed by this community of tribes we’re young and agile – never straight laced.
- 10. What we were looking to achieve 1. Haltingbifurcationof physical and digital retail 2. Create a single consumer view 3. Positively affecting EBITDA contribution with an omnichannel approach 4. Personalisation, over everything 5. Tobe better connected… +
- 11. Retailersneed tobebetterconnected Context ControlConvenience 1 2 with customers
- 12. Retailers need to be better connected Context ControlConvenience 1 2 …and internally too. Marketing Supply chainMerchandising
- 13. Connected retail isn’t easy Understand your consumer Ensure efficient delivery Understand product interactions 1m+ consumers 60+ stores 25k products 3x commerce channels Omnichannel fulfillment
- 14. AI?
- 15. Think big, start small, act fast Ideas TestWorkshop We came with a clear vision & explored all opportunities We mapped out data flows and systems and aligned to our business processes Agreed KPIs with defined ROIs alongside our wider business trading strategies Review & Refine Continually review and refine using machine learning and data science resource 1 32 4
- 16. Hyper-personalisation Social Advertising: Driven by predictors in Single Customer View Customers receive target content usingMessage Personalisation Increase purchase frequency Continual AI feedback loop... Personalisation Target audience list and content deployed on social channels usingCustomer Acquisition Increase social engagement and acquisition for less spend. AI System With Customer AI
- 17. Rapid time to value increase in digital revenues reduction in customer acquisition costs increase in click-through rate on ads return on ad spend (ROAS) 72% 84% 10X28% Hyper- personalisation Data-driven social campaign Facebook ad optimisation Customer acquisition BAU use via revenue driving channels has increased Acquiring new customers through unified social media user preferences Evolved into a multi- faceted product recommendation engine Advanced segmentation of existing customer database via campaigns More to come... Month 1 Month 12
- 18. What’s next? …
- 19. The AI stack for retail
- 20. AI supports connected retail Makes sense of data Supports the three Cs and puts consumer first Connects data, workflows and functions Optimizes supply and demand
- 21. From hype to reality Context Convenience Hyper-personalized marketingcomms Recommendations andtargetedpromos AI powers buyingdecisions Warehouse& labor optimization Customer expectations Control AI System
- 22. The Peak AI System The full-stack AI System, built to deliver AI-driven outcomes across an enterprise. An intelligence layer across the enterprise
- 24. Customerstories Taking AI from hype to reality
- 25. Customer AI Get more from your marketing CONTEXT Message personalization Recommendation engine AI driven social media targeting HYPER-PERSONALIZATION = SALES Higher return on ad spend Increased conversion and higher AOV Reduced churn, increased campaign revenues PREDICTION Customer data Predictive Customer View +
- 27. DemandAI CONVENIENCE AI-driven demand planning and optimization Increased return on capital Improved efficiency and CX Higher margins, faster sell through Customer data Predictive Demand View Markdowns and promotions Inventory allocation Buying optimization Assortment OPTIMIZATION = IMPROVE PROFITABILITYPREDICTION +
- 28. 4xIncreasein returnon capital employed(ROCE) 18%Reductionin stocklevels MAJORASSETSAVINGS& REVENUE GROWTH CONVENIENCE
- 29. Supply AI Fulfil demand at reduced costs CONTROL Logistics optimization Workforce planning Warehouse optimization Reduced stock movement costs Minimized labor costs Increased fulfilment efficiency Customer data Predictive Supply View OPTIMIZATION = IMPROVE PROFITABILITYPREDICTION +
- 30. 5%Improvement in efficiency Fast fashion retailer CONTROL
- 31. GET IN TOUCH [email protected] TORECEIVE: Your personalized report Highlightingtwoareas wherewe canhelp Quantifyingthevalueof your AIopportunity Howbigisyour AIopportunity? Peak.ai
- 32. Thank You! Tom Litchford, WW Retail Leader, AWS Richard Potter, CEO, Peak Tom Summerfield, Head of Commerce, Footasylum